Agricultural Marketing and Farmer Friendly Reforms Index 07/07/2019 – Posted in: Daily News

AGRICULTURAL MARKETING AND FARMER FRIENDLY REFORMS INDEX 

 

For: Preliminary & Mains

Topics covered: About Index, Highlights, Significance, and its background


 

News Flash

NITI Aayog launched “Agricultural Marketing and Farmer Friendly Reforms Index (AMFFRI). The index ranks states based on the degree of reforms they have undertaken in agricultural marketing.

  • Maharashtra achieved the first rank.
  • The State has implemented most of the marketing reforms, also it offers the best environment for doing agri-business among all the States/UTs.
  • Gujarat ranks second with a score of 71.5 out of 100, closely followed by Rajasthan and Madhya Pradesh.

 

About Agricultural Marketing and Farmer Friendly Reforms Index (AMFFRI)

  • AMFFRI has a score that can have minimum value “0” implying no reforms.
  • It has maximum value “100” implying complete reforms in the selected areas.
  • States and UTs have been ranked using this index.

 

Highlights

  • No state in the country has implemented the entire set of market reforms.
  • Land leasing and harvest and marketing of some tree species on private farmland are subjected to various degrees of restrictions in almost all the States/UTs.
  • The second area of reforms captured by the index includes facilitation and liberalization of land lease.
  • The third area included in the index represents freedom given to farmers for the felling and transit of trees grown on private land.
  • The State of Karnataka is considered progressive in implementing market reforms with a score of 62.9.
  • Agriculturally developed State of Punjab ranks 14th with a score of 43.9.
  • Almost two-thirds of States/UTs could not reach even halfway mark of reforms score.
  • Major States like U.P., Punjab, West Bengal, Assam, Jharkhand, Tamil Nadu, and J&K are in this group.
  • States/UTs do not have the APMC Act, which is a challenge to provide ranking to these States in market reforms.

 

Background

  • NITI Aayog launched the index in 2016.
  • The index rank States and UTs based on the implementation of seven provisions proposed under the model APMC Act.
  • Provisions include joining the e-NAM initiative, special treatment to fruits and vegetables for marketing and level of taxes in mandis.
  • These indicators reveal the ease of doing agribusiness.
  • The indicators also reveal opportunities for farmers to benefit from modern trade and commerce.
  • These indicators also represent competitiveness, efficiency, and transparency in agri markets.

 

Source: Economic Times

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